Managing The Administration Process

The administration process relates to the management of a job during the pre-site phase and it is fundamental that it satisfactorily completed before any work begins on site.

To ensure that there are no outstanding administrative issues once on site, it is recommended that a process be put in place to carefully manage the forecasting and entering of the actual Administration Complete date.

To achieve Administration Complete there will generally be a set of pre-requisite requirements and tasks. In knowing these requirements, and what is involved in achieving them, a clear path to Administration Complete and an expected timeframe can be set.

Benefits of Managing Administration Complete

Extensive work flow dates, documents, allocations and appointments can be captured and linked in Framework, allowing for the ability to accurately forecast the progression of the job through to site start.

There are significant benefits to putting a process in place to manage Administration:

• Minimises the risk of jobs holding up construction by moving to far without all pre-requisites.
• Helps ensure that contractual obligations are fulfilled.
• Helps prompt for next step in linear and concurrent processes.
• Effective forecasting allows for effective forward planning.
• Promotes efficiency, saving time and ultimately money.

Terminology - Admin Complete vs ACC

In some areas Administration Complete has been traditionally referred to as ACC or Authority to Commence Construction. Administration Complete is different. In many cases, the true definition of ACC is a Letter of Commencement (LOC), which is a letter from a lending authority confirming the client is in a position to pay the contract price. Though the lender may have a set of pre-requisites which will need to be satisfied by the builder and the client before ACC is provided, these can vary between different institutions and states.

Examples of the types of prerequisites that can be used for Administration Complete are:

• Baseline, best possible and progress forecast calculations.
• Preliminary information from council and authorities, site inspections and costings.
• Staff and supplier allocations.
• Land-specific issues such as tests, surveys, planning overlays.
• Drafting; siting, contract, construction drawings and sketches and reworks.
• Diary appointments and work flow for colour, product and electrical selections.
• Documents; including their estimation and preparation.
• Permit work flows and requirements, such as energy certification and submissions to planning authorities.
• The production ordering process.
• Comprehensive information and tracking on finance applications and approvals.

Achieving Administration Complete can cover all the necessary approvals, certifications and prerequisites, rather than just those required by a lender.

Defining the Administration process

To effectively manage the Admin Process it should be defined and a critical path determined. The key steps to establishing the process should be;

1. Determine the pre-requisites for Administration Complete.
2. Determine the timing of each pre-requisite within the process.
3. Decide what constitutes completion of each pre-requisite.
4. Determine staff responsibilities for completing entering the relevant data.
5. Set Security and Business Rules to control data entry on the pre-requisites.
6. Use expected timings to forecast completion dates for pre-requisites and Administration Complete.
7. Determine tests and reporting to monitor the progress of the pre-requisites.
8. Examine and revise Forecasts at regular intervals.

What To Do

Planning a critical path

A Critical Path is the sequence of activities that must be achieved for the entire process to be completed on schedule. Setting milestones and time frames for these activities allows for timely and efficient management of the requirements.

In determining which activities form part of the Critical Path, consideration must be made for:

• Statutory and contractual requirements to ensure that all obligations are being met
• Best use of the resources available
• Focus on efficiency.

Some examples of the types of questions that can help create a process and timeline are;

• What is required for a Tender to be prepared?
• What can be happening while waiting for a Tender Appointment to occur?
• What is needed to complete the first set of drawings?
• When should the Administrator be allocated?
• What is the permit application requirement checklist?
• When should a site inspection occur?
• When should the finance be confirmed?
• How long should it take to do the ordering for a double storey home?

The answers to these types of questions can assist in the forecasting of Admin Complete, the creation of Work Flow Tests and help determine what Business Rules should be enabled.

A decision as to whose responsibility it is to enter the milestone and Administration Complete dates into Framework is required by the business to ensure the process is being managed effectively. This responsibility can be controlled by applying Security Permissions.

Forecasting Administration Complete

When all the pre-requisites for Administration Complete are defined and a critical path has been established, it is possible to apply this expected timeframe from a particular milestone to Administration Complete.

A simple example of this might be that a job has a tender signed, the land is ready and has no planning or other authority issues, so with all the other requirements to get to Admin Complete, the estimate can be assumed as;

• Drafting: 1 week
• Contract: 1 week
• Permit Application: 4 weeks
• Finance Confirmation/ACC: 1 week
• Ordering/Site Inspection/Re-establishment Survey: 1 week

With this as an estimate, the Administration Complete (Forecast) date can be entered as 8 weeks from Tender Signed.

This Forecast date can then be used to give an indication of progress to the client and forward-plan resources for Administration departments and for site.

Planning

A decision as to whose responsibility it is to enter the administration complete date into Framework is required by the business to ensure the administration complete date is managed effectively.

Also, an internal procedure must be determined outlining the company’s pre-requisites for setting the Administration Complete date. In making this determination, consideration must be made to the statutory requirements and the company requirements to ensure that all obligations are being met and outcomes are reached with the best use of the resources available and in the most efficient manner.

It is also important to set milestones and time frames for activities in the lead up to Administration Complete. This allows for timely and efficient management of the requirements. Some examples of the types of questions that can help create a process and timeline are;

1. What is required for a Tender to be prepared?
2. What can be happening while waiting for a Tender Appointment to occur?
3. What is needed to complete the first set of drawings?
4. When should the Administrator be allocated?
5. What is the permit application requirement checklist?
6. When should a site inspection occur?
7. When should the finance be confirmed?
8. How long should it take to do the ordering for a double storey home?

The answers to these types of questions can assist in the forecasting of Admin Complete, the creation of Work Flow Tests and help determine what Business Rules should be enabled.

Implementation

Due to the impact Administration Complete can have on other processes and calculations, it is vital that the date not be entered without consideration or a defined process.

Several processes are available with Framework that can assist in controlling how and when the Administration Complete date is deemed appropriate to be entered:

• Business Rules can be applied so that entering the date will be stopped if other pre-determined requirements are not met.
• Security permission can be set to limit the users that can enter the Administration Complete date.
• Work Flow analysis tests can be set to help assist staff by presenting them with a series of pre-determined tests in relation to their client jobs.
• Work Flow tools can be implemented to assist by listing jobs forecasted for the end of the administration stage.
• Reporting can be produced at either high frequency or regular interval displaying results on both pre-defined standard criteria as well as user-defined criteria.
• Utilising the Overview Screens.

Business Rules

Business rules such as the following can be applied to the Administration Complete date to ensure that all pre-requisites are met prior to site start:

1. The modified Administration Complete Date must occur after the Permit Received Date
2. The modified Administration Complete Date must occur after the Finance Complete Received Date
3. The modified Administration Complete Date must occur after the Land Settlement Actual Date
4. The modified Administration Complete Date must occur after the Construction Drawings Received Date
5. The modified Administration Complete Date must occur after the Ordering Received Date
6. The modified Administration Complete Date must occur prior to the Site Start Actual Date

In addition to using the Business Rules specifically for entering the Administration Complete date, consideration should be given to applying them to key dates earlier in the process. Some examples of these could be;

1. The modified Tender Signed Date must occur after the Survey Received Date
2. The modified Foundation Design Ordered date must occur after the Working Drawings Received date.

There are standard Business Rules provided with Framework, or Rules can be customised. For further information see Business Rules in the Framework User Guide, or Business Rules Management - Best Practice.

Security

Security can be set on the Administration Complete date at the Default, Group and User levels. Correct use of security allows strict management of user permissions to restrict/allow viewing, editing and deleting of fields to users with the appropriate level of access.

The following Administration Complete security permissions can be modified:

• 87: Administration Complete (baseline forecast)
• 88: Administration Complete (best possible forecast)
• 89: Administration Complete (progress forecast)
• 90: Administration Complete (manual forecast)
• 91: Administration Complete

Each of these can be further restricted for back- and forward-dating.

For further information on modifying permissions, please see Security Permission in the Framework User Guide.

Work Flow Tools

The Work Flow Tools screen is a valuable forecasting tool for managing jobs in the Administration stage to endure a steady flow to site start. Jobs are grouped by month and week. It provides key work flow dates of those current jobs in Administration on the screen without having to run any reports from the system. At a glance, you can see which jobs in administration have the required pre-requisites before site start. Work Flow Tools allows for a staggered release of jobs ready for site start.

It is recommended that the Work Flow Tools screen be reviewed on a weekly basis jointly by the Operations Manager and Customer Service Coordinators, or whoever the staff responsible for releasing jobs to site.

For further information on using Work Flow Tools, please see Work Flow Tools in the Framework User Guide

Work Flow Analysis

The Work Flow Analysis screen presents a series of pre-determined tests used to assist in the analysis and management of the work flow. Specific criteria is set up in the form of tests, which are allocated to users.

Each test represents a set of criteria and allowance of calendar days for a particular task to be completed. The analysis is set up, using the stages, roles, user and allocated tests. This is then conducted, resulting in a list of jobs that meet the selected criteria. This list not only identifies the jobs that require attention at the time the work flow analysis is performed, but also indicates the number of days the activities are overdue.

Work Flow Analysis Tests can be applied to particular staff, such as customer service coordinators, draftspeople or estimators, to manage Administration Complete pre-requisites.

For further information on using Work Flow Tools, please see Work Flow Analysis in the Framework User Guide or Work Flow Analysis - Best Practice.

Reporting

Reports can be run to show progress and identify jobs that require urgent or closer attention.

Examples of reporting on the Administration process are;

• Work Flow Reports: Job listing including selected work flow details, ideal for listing all jobs allocated to a specific staff member
• Exception Reports: Job listing using specific criteria to identify jobs that, for example, have not met expectations.
• Duration Reports: Job listing that displays expected durations for particular stages and how the jobs have performed against these
• Bin Reports: A count of jobs that fall within specific Bins, a specific point in the linear process.

There are standard reports supplied with Framework that can be used for this purpose, or reports can be customised. For further information on Reporting, please see  the Framework User Guide, or contact Insula Software for assistance.

Overview Screens

Utilisation of the Overview screens can also assist in the process. Framework's standard screens are designed to capture the most common and important dates in the process, but there may be other factors specific to a locale or business.

For example, the Permit Overview screen tracks Permit ordering work flow and other key planning and authority requirements and dates; there may be a specific requirement that is listed on another screen, such as on the Sewer screen, that could be listed on a customised Permit Overview screen. This would mean that the Permit Overview screen could act like a checklist for the Permit requirements.

The same can be said of the Administration Overview. If the standard screen does not cover all requirements for Administration Complete, it could be customised to act as a checklist for those requirements, making it easier for staff to immediately assess outstanding items.

For further information on the individual Administration screens, please see the Framework ECM User Guide, or contact Insula Software for assistance.

Ongoing Management

It is highly recommended that the staff responsible for entering the Administration Complete date into Framework are kept up to date with statutory changes.

The critical path set for the pre-requisites of Administration Complete should be reviewed at regular intervals to allow for any changes in requirements, processes or resources.